Importance of Dhanteras

This October calls for festive celebration as it welcome Diwali and Dhanteras. The festival of lights is preceded with Dhanteras when people throng markets to buy gold items and utensils for daily utility. But have you ever wondered why?

Today, let's get to know why Dhanteras remains the much-awaited festival among Indians and also possibly the best one for purchasing gold after Akshaya Tritiya. Dhanteras happens to fall on the first day of the five-day-long Diwali festivity. Interestingly, the festival also goes by the name 'Dhanatrayodashi' or 'Dhanvantari Trayodashi'. The word 'Dhan' means wealth and 'Trayodashi' means 13th day as per Hindu calendar. Dhanteras usually falls on a day or two before Lakshmi Puja during Diwali.

It is largely believed that on Dhanteras goddess Lakshmi visits the homes of her devotees and fulfils their wishes. It holds special significance for the business community due to the customary purchases of precious metals on this day. Also, Lord Kubera, the God of assets and wealth is also worshipped on this day.

Most Hindu families prefer purchasing gold during Diwali. Purchasing gold during Diwali is religiously significant as buying gold during Diwali is considered auspicious. The ritual of buying gold during Diwali is equivalent of inviting Lakshmi, the Goddess of wealth and prosperity at home.

Apart from jewellery, the most preferred items to purchase gold during Diwali are coins. In India, gold coins are specially moulded for Diwali with Goddess Lakshmi embossed on the front and her symbol Shri embossed at the other side of the coin. In other coins, both Goddess Lakshmi and Lord Ganesha, and optionally Goddess Saraswati, are embossed on gold coins.

Is the first day of Diwali which usually falls one or two days before Lakshmi Puja. This year we celebrate Dhanteras on 17th October and Diwali on 19th October .This festival is celebrated with lot of enthusiasm and energy. If Diwali is called Festival of rights, we can call Dhanteras the Festival of buying gold and silver. And most of the purchasers buy gold during particular Muhurat. The Muhurat (chogdiya) for this year are:


Dhanatrayodashi Muhurat to Buy Gold 

October 17, 2017 (Tuesday) - 06:26 to 24:08+

Auspicious Choghadiya timings between 06:26 to 24:08+
Morning Muhurta (Char, Labh, Amrit) = 09:17 - 13:31
Afternoon Muhurta (Shubh) = 14:56 - 16:21
Evening Muhurta (Labh) = 19:21 - 20:56
Night Muhurta (Shubh, Amrit, Char) = 22:31 - 24:08+

Gold Prices May Surge

Gold was once again seeing pulled and pushed by various factors doing rounds in the market. Where one side gold was seen consolidating by a strong dollar price on Wednesday, on the other hand on Friday it once again picked momentum over the North Korean crisis.

Gold prices fell for the fourth consecutive week with the precious metal down nearly 0.5% to trade at 1271 ahead of the New York close on Friday. The losses come amid what seems to be an unstoppable rally in broader risk assets with the major U.S. equity indices up more than 1% on the week.

A surprise U.S. Non-Farm Payroll report on Friday showed the economy shedding some 33K jobs last month, missing expectations for a gain of 80K. However, a closer look at the data revealed underlying strength in the labor markets with labor force participation rising to its highest level since March of 2014 at 63.1%. Wage growth figures were also stronger-than-expected with average hourly earnings posting a 2.9%  gain – up from a previous upwardly revised 2.7% . With the recent barrage of hurricanes largely accounting for the weak headline figure, the broader labor market outlook remains firm and keeps the FOMC on target for a December rate hike.

The dollar earlier rose to a more than two-month high against the yen and seven-week high against the euro as wage data from the September labour market report was seen as a sign of potentially improving inflation.

The greenback jumped as high as 113.43 yen, the highest level since July 14, before dropping to 112.71. The euro fell to $1.1670, the lowest level since Aug. 17, before rising back to $1.1726.
The U.S. dollar tumbled on Friday on a report that North Korea is preparing to test a long-range missile, overturning earlier gains after the government’s jobs report for September showed an unexpected rise in wages.

RIA news agency cited a Russian lawmaker’s making comments on the missile test, which North Korea believes can reach the U.S. West Coast.

Amidst these tumbling and rising influencers, gold prices are expectedto surge not only in the international but also domestic market given the upcoming and biggest festival for gold in India.
A few reasons why weexpected gold prices to shoot are:

10 reasons why gold will surge:

1. Gold will follow inflation which will increase strongly eventually leading to hyperinflation.
2. Real interest rates will be negative which favours gold. This was the case in the 1970s when gold rose from $35 to $850 despite rates in the mid-teens.
3. China’s accumulation of gold on a massive scale and potentially introducing a gold for oil payment system
4. Inflation will increase institutional gold buying substantially. Gold is today 0.4% of global financial assets. An increase to 1% or 1 1/2% would make the gold price go up manifold.
5. With relatively low global demand today, annual goldmine production of 3,000 tonnes is easily absorbed. With falling production, the coming upturn in demand can only be met by much higher prices.
6. Demand for gold will rise in the domestic market during Dhanteras and Diwali. After Akshaya Tritiya, gold sales are seen to be highest on Dhanteras and this rising demand might push gold prices further.